ALL $3$ PARTS ARE THE SAME QUESTION

Phillips Ltd$.$ purchased a machine on $26$ March $203$ for $$118,000$ and began to use it immediately. The estimated useful life of the

machine is $5$ years, and it has an expected residual value of $$11,100$ at that time. Phillips uses straight$-$line depreciation.

Required:

$1$ & $2)$ Calculate annual depreciation for $203$ through $208$ assuming that depreciation is calculated to the nearest month using three

accounting conventions:

a$.$ Half$-$year convention

b$.$ Full$-$first$-$year convention

c$.$ Final$-$year convention Calculate the gain or loss on disposal assuming that the asset is unexpectedly sold for $$7,000$ at the end of $206,$ using net book

value from requirement $1,$ and then from the three alternatives in requirement $2.$

$3)$Calculate the gain or loss on disposal assuming that the asset is unexpectedly sold for $$7,000$ at the end of $20$X$6,$ using net book value from requirement $1,$ and then from the three alternatives in requirement $2.$